Government outlines support for private enterprises

The Minister of Trade and Industry, Alan Kyeremateng, has urged private sector operators to team up with government to execute the country’s development agenda of one district one factory.

The Minister told captains of private business entrepreneurs in Accra that all they needed to do was to apply and express interest in partnering government and backed with a solid business plan to play a role in the one district one factory policy.

The engagement of the private sector operators with the Ministers was organised by the Private Enterprises Federation (PEF) in collaboration with the Ghana Institute of Management and Public Administration. The Minister said the business proposal must have the capacity to influence the economic fortunes of the district since the focus of the policy was to create job opportunities for Ghanaians.

Mr Kyeremateng also stressed that the business plan should spell out how value addition would enhance economic transformation for the district with an investment size of GH¢1 million to GH¢5 million.

He said the private sector played a crucial role in the country’s developmental agenda, and said that government would continue to create the enabling environment for private sector to succeed because they constitute one of the country’s engine for economic growth.

He said government was committed to providing technical support to the private sector to expand their businesses and employ more people, saying the support would be in a form of grants, equity or quasi-equity.

Mr Kyeremateng further announced government intervention dubbed ‘stimulus support’ to help existing privately owned business companies in particular districts to improve competitiveness and stimulate development.

He said the companies should have high potential for an enhanced job creation, right and competent management team, evidence of sound financial background and good record of operational and cost performance.

He stressed that government would go through diagnostic study to identify the needs of existing companies and provide the needed technical assistance in areas of procurement and expansion of businesses in the district.

The Minister explained that the support would be provided in the form of commercial bank loan with a subsidised interest rate and equity financing through venture capital and urged private business entrepreneurs to apply for the support.

“The Ministry will establish a monitoring and evaluation mechanism to track government support to those projects to ensure value for money, transparency and accountability,” he added.

Dr Owusu-Afriyie Akoto, Minister of Food and Agriculture, commended the private sector in contributing to the country’s development, adding that agricultural growth rate had reduced in the past nine years.

He said the country’s agricultural growth rate in 2007 was 7.4 per cent and reduced to 2.5 per cent in 2016 with a reduction in productivity rate as well.

“Government budget allocation to the Ministry has increased from GH¢500 million to GH¢725 million and that government has targeted 200,000 farmers to produce five priority crops-maize, sorghum, soya beans, rice and vegetables with subsidised fertilisers and improved seeds”.

Nana Osei-Bonsu, the Chief Executive Officer of PEF, commended government for recognising the role played by private enterprises and pledge their support to ensure a successful public-private partnership development.